Truist Financial Corporation reduced its prime lending rate from 7.00% to 6.75%, a 0.25‑percentage‑point cut that takes effect on December 11, 2025. The move is the first rate adjustment the bank has made since early 2025, when it maintained the 7.00% level after a series of Federal Reserve rate hikes.
The prime rate is the benchmark for Truist’s variable‑rate products, including mortgages, credit cards and small‑business lines of credit. By lowering the rate, the bank aims to make borrowing cheaper for consumers and small‑business customers, thereby supporting loan growth in a low‑interest‑rate environment that has been shaped by the Fed’s 5.25‑5.50% federal funds target.
Truist’s decision comes amid a broader industry trend. Several major banks—including JPMorgan Chase, Bank of America and Wells Fargo—have also adjusted their prime rates in response to the Fed’s policy stance, creating a more competitive landscape in the Southeast and Mid‑Atlantic markets where Truist is focused on expanding its consumer and small‑business footprint.
The rate cut translates into tangible savings for borrowers. For example, a 30‑year fixed mortgage with a 3‑percentage‑point spread would see its rate fall from 10.00% to 9.75%, reducing a $300,000 loan’s monthly payment by roughly $200. Credit card holders would see their average APR drop by 0.25 percentage points, lowering the annual cost of credit.
From a business perspective, the cut is part of Truist’s strategy to leverage its strengthened capital position and balance‑sheet repositioning to drive core banking growth. Management highlighted the bank’s “purpose‑driven financial services” focus and its investment in digital capabilities as key enablers of this initiative.
While market reaction data are not available, the rate adjustment signals Truist’s confidence in its competitive positioning and its commitment to delivering more affordable credit to its customers in a challenging economic environment.
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